Exclusivity banned in zero-hours contracts

The government has finally outlawed the use of exclusivity clauses in zero-hours contracts from 26 May. But unions are unimpressed.

This and other employment law-related measures are contained in the first commencement order made under the Small Business, Enterprise and Employment Act 2015. 

Section 153 of the Act bans on the use of exclusivity clauses in zero-hours contracts.

This means that: “Any provision of a zero hours contract which (a) prohibits the worker from doing work or performing services under another contract or under any other arrangement, or (b) prohibits the worker from doing so without the employer’s consent, is unenforceable against the worker.”

Further regulations dealing with the anti-avoidance aspects are awaited.

Steve Turner, assistant general secretary of the Unite general union, said: “Banning exclusivity clauses is a joke. It misses the key point that zero hours confer fear and misery of those forced into them — no security, no protection and little dignity.

“Token measures like this do little to address the misery of hand-to-mouth, wait by the phone jobs which are a curse for the people relying on them and their families.”

Section 152 of the Act increases the penalty which can be imposed on an employer that underpays its workers in breach of the National Minimum Wage law. The maximum penalty of £20,000 can now be calculated on a per worker basis rather than on a per employer notice basis.

www.legislation.gov.uk/uksi/2015/1329/made

www.legislation.gov.uk/ukpga/2015/26/section/153/enacted

www.unitetheunion.org/news/unite-statement-on-zero-hours-exclusivity